France, Germany Joust Over Euro Bonds

Finance Ministers Fail to Reach Compromise on European Instruments, Paving Way for Showdown at EU Talks This Week

By

William Boston

Updated May 21, 2012 4:27 p.m. ET

BERLIN—France and Germany came no closer to a compromise on the thorny issue of how to revive economic growth in the euro zone after a meeting in Berlin on Monday, paving the way for a potential showdown of European Union leaders at an informal summit this week.

The new government of French President François Hollande is upsetting the balance in the Franco-German relationship, threatening to block the fiscal treaty on budget...